Correlation Between Bohai Leasing and Ming Yang
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By analyzing existing cross correlation between Bohai Leasing Co and Ming Yang Smart, you can compare the effects of market volatilities on Bohai Leasing and Ming Yang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bohai Leasing with a short position of Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Ming Yang.
Diversification Opportunities for Bohai Leasing and Ming Yang
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bohai and Ming is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart and Bohai Leasing is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bohai Leasing Co are associated (or correlated) with Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Ming Yang go up and down completely randomly.
Pair Corralation between Bohai Leasing and Ming Yang
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 1.29 times more return on investment than Ming Yang. However, Bohai Leasing is 1.29 times more volatile than Ming Yang Smart. It trades about 0.08 of its potential returns per unit of risk. Ming Yang Smart is currently generating about 0.06 per unit of risk. If you would invest 267.00 in Bohai Leasing Co on October 18, 2024 and sell it today you would earn a total of 87.00 from holding Bohai Leasing Co or generate 32.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Bohai Leasing Co vs. Ming Yang Smart
Performance |
| Timeline |
| Bohai Leasing |
| Ming Yang Smart |
Bohai Leasing and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Ming Yang
The main advantage of trading using opposite Bohai Leasing and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Ming Yang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ming Yang will offset losses from the drop in Ming Yang's long position.| Bohai Leasing vs. Dawning Information Industry | Bohai Leasing vs. XiaMen HongXin Electron tech | Bohai Leasing vs. Emdoor Information Co | Bohai Leasing vs. Guangzhou Ruoyuchen Information |
| Ming Yang vs. Bohai Leasing Co | Ming Yang vs. Offcn Education Technology | Ming Yang vs. Harbin Air Conditioning | Ming Yang vs. Easyhome New Retail |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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